Australia’s retail sector experiences an exhilarating rebound as September retail sales surge at their highest rate in 8 months, signaling a promising recovery for the economy.
Australian retail sales have seen a significant boost, rising at the fastest pace in eight months in September. This suggests some resilience in consumer spending, which could lead to an interest rate hike as early as next week. The Australian dollar has already risen by 0.4% to $0.6360, while the three-year government bond yield has reached a 12-year high of 4.388%. The Reserve Bank of Australia is now expected to raise rates by a quarter-point in November, with a 61% probability, up from 58% previously. The Australian Bureau of Statistics reported that retail sales increased by 0.9% in September from August, surpassing analysts’ expectations. Sales of A$35.9 billion were up 2.0% from the previous year. Factors such as the warmer spring weather, the release of a new iPhone model, and the introduction of a government rebate program in Queensland contributed to the increase in spending. This resilience in consumer spending bodes well for economic growth, as retail volumes have avoided a decline.